Feb 21, 2011

Indosiar, Surya Citra, & Emtek to merge

PT Indosiar Karya Media Tbk (IDKM), PT Elang Mahkota Teknologi Tbk (Emtek), and PT Surya Citra Media Tbk (SCMA) plan to merge.
In an official statement submitted to Indonesia Stock Exchange (IDX) today, IDKM's President Director Handoko said Indosiar's board of commissioner has supported the proposed merger on February 18 2011.
"Board of commissioner has supported the merger as long as it is in line with the regulation," Handoko said.
IDKM, parent of Indosiar TV, is controlled by Salim family via PT Prima Visualindo with 27.24% stake. Citibank Singapore holds 8.5%, PT Dinamika Usaha Jaya holds 5.09%, and public investors own 59.17%.
Both Elang Mahkota and Surya Citra Media, parent of Surya Citra Televisi, are controlled by Sariaatmadja family.
Many thought that the proposed merger between three companies are following shares sale of palm oil plantation PT PP London Sumatra Indonesia Tbk (Lonsum) to Salim Group few years ago. In return, Salim family allows Indosiar to be consolidated by Sariaatmadja family.

Disclosure: No position at the stock mentioned above.

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